Problem:
Maguire Manufacturing Inc. has three divisions which are operated as profit centers. Actual operating data for the divisions listed alphabetically are as follows.
|
Operating Data
|
Women's Shoes
|
Men's Shoes
|
Children's Shoes
|
|
Contribution margin
|
$240,000
|
(3)
|
$180,000
|
|
Controllable fixed costs
|
100,000
|
(4)
|
(5)
|
|
Controllable margin
|
(1)
|
$ 90,000
|
96,000
|
|
Sales
|
600,000
|
450,000
|
(6)
|
|
Variable costs
|
(2)
|
330,000
|
250,000
|
Instructions
(a) Compute the missing amounts. Show computations.
(b) Prepare a responsibility report for the Women's Shoes Division assuming (1) the data are forthe month ended June 30, 2012, and (2) all data equal budget except variable costs which are $10,000 over budget.